CoinShares released a 19 page report on bitcoin mining, here are the highlights

CoinShares, the cryptoasset investment and research platform, released a new 19-page report titled: “The Bitcoin Mining Network—Trends, Marginal Creation Cost, Electricity Consumption & Sources.”

The report analyzes the geographic distribution, composition, efficiency, electricity consumption, and electricity sources of the Bitcoin mining network.

Additionally, the white paper examines trends in hash rate, marginal creation cost, hardware costs, and hardware efficiency.

Obviously, there’s a lot to read through for a 19-page report, so we did all the hard work for you and summarized everything.

  • On average, the efficiency of hardware introduced since CoinShare’s last report has fallen along the previously identified trendline, while the cost of the hardware has fallen below the previous trendline, and the network’s hashrate has grown faster than the two-year average, but slower than the all-time average.
  • The firm notes that bitcoin miners are likely mining at a loss, but given the right conditions, some mining operations can still be profitable
  • The report concludes that at prices of $4,000/btc the average miner is either: operating at a loss and unable to recover capital expenditure or paying less for mining gear than the firm’s estimate. (see picture below)


  • According to the report, miners are leaving China in significant numbers, and instead, are setting up operation in Scandinavia, Russia, Canada and the United States due to cheaper cost and better infrastructure.
  • An estimation that no more than 60% of miners currently remain in China.
  • In certain regions of China, depending on the energy source, energy usage rates can be higher than 30%.
  • Energy surplus, which would otherwise be wasted, will often be sold at cheaper prices to miners.
  • CoinShares estimates that Sichuan has a 43.2% share of global bitcoin mining renewable energy usage, the remaining relevant Chinese provinces have a 5.7% share, relevant western regions have a 27.8% share, and the rest of the world has a 0.9%.
  • CoinShares concludes that renewable energy makes 77.6% of total bitcoin mining.



This was an extremely and well put together report generated by CoinShares. CoinShares usually put together 2 of these type of reports every year and this is their second one.

We do encourage that you read through the entire 19-page report yourself if you want a more in-depth picture of what’s happening in the Bitcoin mining industry. Hope this helps everyone!

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Wilson is a 3x Startup Entrepreneur. He is passionate about the cryptocurrency space. You can catch him tweeting about cryptocurrency often @itswilson8 You can also email Wilson directly at

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